Investment Planning to Minimize Climate Risk in Agricultural Production

Deb Pal, B and Shalander, K and Patan, E K (2020) Investment Planning to Minimize Climate Risk in Agricultural Production. Discussion Paper. International Food Policy Research Institute (IFPRI), India.

[img] PDF - Published Version
Download (860kB)


Research Program : Innovation Systems for the Drylands (ISD)

Additional Information

The authors acknowledge the funding to CCAFS from the CGIAR Fund Donors and through bilateral funding agreements


The primary aim of this study is to prioritize investment required for scaling up climate-smart agriculture (CSA) technologies across different districts of Telangana state, which is in the semi-arid region of India. First, we analysed the trade-offs between expected agricultural income and its deviation across districts under drought and normal weather scenarios. The conventional MOTAD model was extended with various climate-smart technologies to assess their role in minimizing the trade-offs under various weather scenarios. A district-level panel dataset on cost of cultivation and crop production for 11 major crops under six different climate-smart technologies and farmers’ traditional practices (FTPs) for five years (2010-11 to 2014-15) has been used. The dataset comprised a collation of official statistics on cost of cultivation, focus group interviews with farmers over the years, and data from experimental plots of Regional Agricultural Research Stations. The analysis reveals that the adoption of CSA technologies is likely to reduce production risk by 16% compared to FTPs while achieving optimum levels of crop income. Under a scenario of higher probability of drought, production risk is likely to increase by 12% in the state under FTPs; the adoption of CSA technologies could reduce the risk by 25%. The study suggests increasing investments in farm ponds and un-puddled machine transplanting in rice to minimize the risk-return trade-offs under a higher drought frequency scenario. Finally, the study generates evidence for policymakers to make informed investment decisions on CSA in order to enhance farming systems resilience across districts in the semi-arid state of Telangana, India.

Item Type: Monograph (Discussion Paper)
Divisions: Research Program : Innovation Systems for the Drylands (ISD)
CRP: CGIAR Research Program on Climate Change, Agriculture and Food Security (CCAFS)
Series Name: IFPRI Discussion Paper
Uncontrolled Keywords: Climate Smart Agriculture, Agricultural Technology, Investment Planning, Risk Minimization
Subjects: Others > Climate Risk
Others > Climate Smart Agriculture (CSA)
Others > Agriculture-Farming, Production, Technology, Economics
Depositing User: Mr Arun S
Date Deposited: 19 Feb 2021 03:41
Last Modified: 19 Feb 2021 03:41
    View Statistics

    Actions (login required)

    View Item View Item